Living Trust

What is a Living Trust?
A living trust is a legal document that, just like a will, contains your instructions for what you want to happen to your assets when you die. But, unlike a will, a living trust avoids probate at death, can control all of your assets, and prevents the court from controlling your assets at incapacity.

What is Probate?
Probate is the legal process through which the court sees that, when you die, your debts are paid and your assets are distributed to your will. If you don't have a valid will, our assets are distributed according to state law.

With No Will		With a Will	With a Living Trust
At Death	Probate: Court Orders your debts paid and assets distributed according to state law.	Probate: Same as no will, but assets distributed per your will (if valid and any contests are unsuccessful).	No Probate: Debts paid and assets distributed by successor trustee according to instructions in your trust.
Court Costs	At Death: Often estimated at 3-8% of estate's value. At Incapacity: Impossible to estimate	Same as no will. Costs can increase if will contested.	At Death: Usually none if no estate taxes. At Incapacity: None. (Attorney can be helpful for larger estates).
Time	At Death: Usually 9 months to 2 years before heirs can inherit. At Capacity: court involved until recovery or death.	Same as no will.	At Death: Usually just weeks (larger estates may take longer for estate tax filing). At capacity: No delays.
Flexibility & Control	None: Court processes, not your family, have control at incapacity and death. When you die, assets are distributed according to state law.	Limited: Same as no will except, when you die, assets are distributed according to your will (if valid and any contests are unsuccessful). You can change your will at any time.	Maximum: You can change/discontinue your trust at any time. Assets stay under control of your trust, even at incapacity and after your death. More difficult than a will to contest.
Privacy	None: Court proceedings are public record. Family can be exposed to disgruntled heirs, unscrupulous solicitors.	None: Same as no will.	Maximum: Living trusts are not public record. Your family can take care of your financial affairs privately.